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Economic savings from this approach are substantially greater than the costs and it won’t increase electricity prices

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Economic savings from this approach are substantially greater than the costs and it won’t increase electricity prices

Lashof, 12 – director of the climate and clean air program at the Natural Resources Defense Council (Daniel, “Closing the Power Plant Carbon Pollution Loophole: Smart Ways the Clean Air Act Can Clean Up America’s Biggest Climate Polluters” December, http://www.nrdc.org/air/pollution-standards/files/pollution-standards-report.pdf)
NRDC’s recommended CO2 performance standards will achieve considerable emission reductions through 2020 with manageable costs to the electric power sector. The analysis shows that the proposed policy approach will reduce CO2 emissions by 26 percent from 2005 levels by 2020, and 34 percent by 2025, with $4 billion in annualized compliance costs in 2020. These reductions will be achieved through a combination of demand-side and supply-side efficiency improvements, increased investment in renewable energy capacity, and an increased market share for lower-emitting generation sources.

The value of societal benefits could reach $60 billion in 2020, as much as 15 times the costs of compliance. NRDC estimates that in 2020 the societal, public health, and economic benefits of reducing emissions of SO2 will be $11 billion to $27 billion, while the benefits of reducing CO2 will be $14 to $33 billion. The range in total benefits is $25 billion to $60 billion, or roughly 6 to 15 times the costs of compliance. The benefits accounted for in the valuation of avoided SO2 emissions include avoided mortality, heart attacks, asthma attacks, hospital visits, respiratory symptoms, and lost workdays.

The recommended approach will lower wholesale electricity costs. NRDC’s analysis indicates that, under the recommended approach, wholesale power prices would be 4 percent lower than under the Reference Case in 2020. Meanwhile, energy efficiency improvements in households and businesses would reduce electricity consumption, lowering electricity bills and emissions at the same time.

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